$125 mn Exim Bank LOC for Sudan project

The Export-Import Bank of India has extended a $125 million Line of Credit (LOC) to the Government of Sudan for financing the Mashkour Sugar Project in Sudan.

This is the second and final tranche of the total credit commitment of $150 million for financing the project, according to an official statement.

The LOC agreement was signed here Monday between EXIM Bank Chairman and Managing Director T.C.A. Ranganathan and Sudan Finance Minister Ali Mahmoud Mohamed, in the presence of India's Minister of State for External Affairs Praneet Kaur.

Till date, the Indian Government has extended seven LOCs to Sudan worth a total of US$691.90 million

The LOCs have supported export of items like electricity equipment, photovoltaic cells, diesel locomotives, textile machinery, pumpsets, supply of bogies and spares, and setting up of 4x125 MegaWatt Kosti combined-cycle power plant in Sudan through the Bharat Heavy Electricals Ltd.

Other projects which have benefitted are Singa-Gadaref transmission and sub-station project, supply of agricultural inputs, technical and laboratory equipment to higher educational institutions, scientific equipments, solar electrification, equipment needed by Sudan Railways, micro-industrial projects and development of livestock production and services.

Under the LOC for Mashkour Sugar Project, Exim Bank will reimburse 100 percent of the contract value to the Indian exporters, upfront upon shipment of goods.

Presently, Exim Bank has in place 175 LOCs covering 76 countries in Africa, Asia, Latin America, Europe and CIS with credit commitments of over $9.27 billion, available for financing exports from India.

The Indian government's LOCs are a risk-free, non-recourse export-financing option to Indian exporters which help promote exports and enable demonstrate Indian expertise and project execution capabilities in emerging markets.